Philippine stocks fell for the third straight day on Thursday, with more profit-taking in dominant phone firm PLDT and its chief rival Globe Telecom Inc after a recent 9-day rally.
The main index eased below the 1,700 level, closing 14.22 points or 0.83 percent lower at 1,691.86 points. The index is up 17.3 percent so far this year.
Analysts said the market may rebound on Friday on optimism that President Gloria Macapagal Arroyo will aggressively promote her reform package of new tax measures to rein in persistent budget deficits.
They said the government's recent approval of a rate hike by state-owned and debt-laden National Power Corp (Napocor), the largest electricity producer, showed it had political will to pursue unpopular measures.
High oil prices tend to undermine investor confidence as they eat into corporate profits.
Turnover rose to 647.94 million pesos ($11.5 million) from Wednesday's 528.49 million pesos. Losers narrowly beat gainers 38 to 35 and there were 51 stocks unchanged.
Philippine Long Distance Telephone Co (PLDT), the country's largest phone firm, fell 20 pesos or 1.46 percent to 1,350 pesos. It was the most active stock and accounted for 21 percent of total trade.
PLDT, a quarter-owned by Hong Kong's First Pacific Co Ltd, had risen more than 12 percent from Sept. 1-13.
Globe Telecom dipped 1.47 percent or 15 pesos to 1,005 pesos.
Analysts saw the market trading within a range at 1,680 to 1,700 points in the near future.
"Investors aiming to position on the Philippine bourse's medium- to long-term prospects are likely to seize this weakness to position gradually in selected sector performers," 2TradeAsia.com said.
Leading mall developer SM Prime Holdings Inc, which rose more than 8 percent during the market's run-up from Sept 1-13, fell 1.64 percent or 10 centavos to 6 pesos.
The B-shares of San Miguel Corp, Southeast Asia's largest food and beverage firm, fell 2.14 percent or 1.5 pesos to 68.5 pesos.
The country's largest energy holding company, First Philippine Holdings Corp, fell 1.82 percent or 50 centavos to 27 pesos.